The term may sound like an oxymoron, but what I meant is the pool of cash that cannot be withdrawn or spent easily due to regulatory reasons. With this reasoning, one of the first things that come to mind for a local would be one's Central Provident Fund (CPF) monies, and the next would be the Supplementary Retirement Scheme (SRS) funds.
But these pools can be invested, though subjected to selected financial instruments and for CPF, quantum quotas. Currently CPF is paying at least 2.5% for the Ordinary Account (OA), and 4.08% for the Special Account (SA).
Whilst for my case I would not use the SA for investing given the relatively high and almost riskless rate, the 2.5% yearly returns for OA can be statistically surpassed depending on the duration and type of assets invested, though with an element of risk. Similarly for SRS, which are typically under the prevailing bank savings account rates (now is less than half a percent), the impetus to invest it is even greater.
As the saying goes, make money work harder for you. Granted that placing them as they are (i.e., inside OA and the SRS account) would still bring the dough albeit on a safer side, I would like to have more by taking on some risk and volatility. This is for getting a higher amount when OA (at least from age 55) and SRS (for me from age 62) turned liquid, which in turn increase the funds to supplement our step-down/retirement phase of life.
Related post:
Should I (Really) Invest My CPF? (Part 1)
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